Under Proposition 13, in California, that property tax on that building will be 1% of its assessed value. We know it is costing Apple about $2.8 billion to build plus the cost of the land acquisition which at the moment i don't recall. There is 155 acres on the campus, so pull a figure of $60,000 per acre out of thin air gives us with costs about $10 million, add improved buildings at another $130 million for HP's old campus, and let's round it all to $3 billion assessed valuation. Prop 13 limits property taxes to 1% of the value, so every year the local government will get $30,000,000 in property taxes, plus allowed assessments over and above that, usually about 30% extra added to the tax bill in "ad valorem fees." Call it $39 million per year. So, in just ten years, the local governments would get a $390 million. I ran across some updated figures. The cost of the project has increased to $5 Billion. Ergo, the yearly property tax bill will be more like $65 million. In ten years, that's $650 million to the local government entities.
Sales tax to the City of Cupertino on the construction materials on that would be on an estimated $2.5 billion. . . $18,750,000.
I just had a thought that since the construction workers are earning their income inside the City Limits of Cupertino, they would be required to pay Cupertino Income Taxes. . . on the labor and also on the profits of the contractors. That's another $2.5 billion at 6% to the City of Cupertino. Perhaps $150 million, depending on exclusions and deductions.
This Liberal Mayor wants to have his cake and eat it too.